A levy on electric vehicles ensures long-term road funding

With an increasing number of electric vehicles on the road, mineral oil tax is generating less income. The Federal Council wants to offset this by introducing a compensation levy on electric vehicles. It has published a consultation draft for the introduction of such a levy. INFRAS supported FEDRO together with Ecoplan in drafting the proposal.

The mineral oil tax on fuels is important for transport infrastructure: it is the most substantial source of income for the Special Financing for Road Transportation (SFSV) and the National Highways and Urban Transport Fund (NAF). However, with electric vehicles’ increasing popularity, the amount earned from mineral oil tax is decreasing. In the long term, it will not be enough to cover the financial needs of our transport infrastructure.

Swiss government launches consultation

To compensate for the loss of tax revenue, the Federal Council plans to introduce a tax on electric vehicles. The Federal Council has set the parameters for the replacement of the mineral oil tax in June 2022. The Department of the Environment, Transport, Energy and Communications (DETEC) has now launched the consultation process on the draft bill for the design and introduction of this tax. The Federal Roads Office (FEDRO) was supported by the INFRAS / Ecoplan consortium in the drafting of the bill. The consortium was able to draw on the technical background report for the design of a mileage-based tax.

Two variants are under discussion

With the consultation document, two options or bills are presented.

• The first option is a mileage-based tax that varies according to vehicle category and weight.
• The second option is a consumption-based tax on the electricity used to charge electric vehicles.

In addition, the Federal Constitution is to be amended so that the revenue from the levy or tax is used in the same way as the revenue from the mineral oil tax. The consultation period will end in January 2026.

More information (in German)

• Federal press release
• Theme page with links to the consultation documents
• Report to the Federal Council «Concept for the replacement of mineral oil taxes (substitute levy)»
• Technical background report «Concept for a mileage-based tax»

Further reading and studies on the topic (in German)

• Mileage-based tax: Alternatives to mineral oil tax
• Mobility pricing for long-term financing of transport infrastructure
• Mobility pricing can significantly reduce traffic demand during peak hours